Ethereum co-founder and CEO of Consensys Joseph Lubin announced that Consensys and the US Securities and Exchange Commission (SEC) have reached an agreement in principle to dismiss the securities enforcement case concerning MetaMask.

The case, which targeted Consensys popular cryptocurrency wallet, is expected to be formally closed pending approval by the agency.

SEC Ends MetaMask Probe

Lubin took to X to express satisfaction with the outcome and stated that while Consensys was prepared to fight the lawsuit to its conclusion, the resolution marks a positive development for blockchain software developers.

The announcement follows a series of similar moves by the SEC in recent weeks. The agency has dropped its lawsuit against Coinbase and closed investigations into OpenSea, Robinhood, Uniswap, and Gemini. These actions come a month after the resignation of SEC Chair Gary Gensler on January 20.

Under Genslers leadership, the Commission adopted an aggressive approach to cryptocurrency regulation and claimed that most digital tokens should be classified as securities. The regulatory stance resulted in multiple legal actions against crypto firms, with the securities watchdog accusing them of offering unregistered securities.

However, since Genslers departure, the SEC has rapidly shifted course, backing away from several high-profile cases.

Lubin Welcomes SECs Shift

According to Lubin, the companys lawsuit against the SEC, which aimed to prevent Ethereum from becoming a target of enforcement actions, was a significant factor in the agencys decision to halt its investigation into Ethereum.

Lubin described each legal and policy victory as an important step toward building a better financial system and internet infrastructure. Looking ahead, Lubin expressed appreciation for the SECs new leadership and the agencys apparent shift toward a more pro-innovation and pro-investor stance.

We will remain deeply engaged with public and private policymakers going forward. Crypto wants the U.S. to address the best interests of consumers and businesses alike, and we are already on our way to making that happen. Now we can get 100% back to building. 2025 is going to be the best year yet for Ethereum and Consensys. The paradigm shift to a much more decentralized world is accelerating.

The exec had previously criticized the SEC for what he termed an abuse of power after Consensys was forced to lay off 20% of its workforce in October last year due to macroeconomic challenges as well as significant legal costs incurred during the extended regulatory battles.